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Chris Zagorski Archive for 2010
More about phones, banks and social media
I’ve blogged in the past about how I am using my new phone to run my life in a constant quest for organization. When I bought my phone (the HTC Incredible) at the end of May, the reviews heralded it as the latest and greatest. The reviewers couldn’t seem to say enough good things about it. I knew when I bought it that the reviewers’ excitement would last about a week, until the next new phone was released.
Sure enough, Motorala released the Droid X. My brother AND my mother both bought it. (Yes, my mother, who until recently didn’t even know how to take a picture with her phone, let alone email with it, now owns a phone that the tech guys are drooling over.)
I’m just a little bit jealous. The Droid X is a fabulous phone. (If you really want to know why, you can visit www.phonearena.com which will tell you anything you want to know about any type of phone.)
There are truly a lot of things about the phone that are thrilling and interesting. (By now you might be thinking that I’m one of those techies I mentioned. Trust me, I’m not.) Anyway…one of the things that grabbed my attention about the launch of the Droid X is how Motorola used Social Media to promote it. I know about the event, in part, because a family member found the phone hidden in Birmingham, Alabama. True story. Really, truly, true.
So, by know you are probably wondering how this relates to banking. It does. I promise. Recently we’ve discussed using social media in several of our financial webinars. For the most part we conclude that financial services companies haven’t embraced social media, but we expect to see more experimentation. However, we acknowledge that the fit between banks and social media is a bit of a struggle. And since when I’m not thinking about my phone, I’m thinking about the banking industry, it got me thinking about what banks could learn from this, if anything.
The Droid X promotion was interesting because it combined users’ virtual worlds with their real worlds. Verizon did this by using Twitter to tweet clues about where the phones were hidden. The final clue was the GPS coordination for the location of the certificate. The company gave away 21 phones, each valued at $569.99. The tweets were along these lines:
• Last two phones today! Feeling lucky in Las Vegas? Want to see a Droid X in the “Show Me” state? Get ready because clues are coming!
• Droid X designate #1 has hit Las Vegas Blvd. GPS coordinates transmitting in 30 minutes. Let it roll!
• If you are in Las Vegas, go to N 36 09.308 W 115 08.977. Check with Google Maps but hurry!
Don’t get me wrong. I don’t think banks should jump head first into social media today, or even anytime soon. But since advertisers have to go where the people are, and the people are on Facebook, Twitter, MySpace, and increasingly on the newcomers such as Four Square, I don’t think social networking can be ignored.
To date, I think one of the best uses of social media for banks are things that can be moved from traditional media or things that become better by allowing users to interact with them in some way.
Chase’s Community Giving Program was a great example of this. It was a program that existed for some time, but the company made a decision to move it online. It also took a decision that was typically made by the bank and let customers take part in that decision.
It seems like social media would also be a great place for banks to promote their contests and sweepstakes. The Capital One Million Miles giveaway is the most recent promotion that comes to mind. The company took out print ads and online ads (you can view them in Comperemedia) but it seems like a social media presence would have been a great addition to the promotion.
Use of personal information v. targeted deals
I have been editing the Loyalty Marketing Oxygen report this week (due to publish in September), and it got me thinking about privacy issues and how much has changed in the last year or two.
The Wall Street Journal recently ran a series of articles about how web activity is monitored and used, but the main point was that most consumers don’t know the extent to which companies are gathering information about them – usually to target their marketing efforts more specifically.
In the Loyalty Marketing report, 58% of consumers state that “more relevant or individualized deals” would be one of the top three features that would entice them to participate in a loyalty or rewards program. However, Mintel’s data also shows that consumers are at best conflicted about companies using their personal information. Here are some of the responses that lead me to think that:
• 68% say they “worry that new websites may use my personal information without my knowledge”
• When consumers are asked, “If a company used my personal information to sell me products I would switch to a different competitor that did not use personal information” – a significant number (62%) agree, and another 24% say they don’t know (for a total of 86%)
• 88% say that they “think that my personal information is something that belongs to me, like any other possession”
• 87% see the concept of privacy as meaning “control of my own information”
• 92% see privacy as a “fundamental human right”
There is no doubt that both businesses and consumers can benefit from loyalty programs and advertising that are more specific to what a consumer can actually use. There is nothing more annoying than a constant barrage of ads that have nothing to do with our needs or desires at our current lifestage or situation.
However, consumers feel VERY strongly about their right to privacy, and companies will need to tread very carefully so as to not do major damage to their brands if these behavioral targeting strategies are fully revealed. As the recent situation with Facebook shows us, in the age of Social Media the backlash can be quite sudden and severe.
Recycling in the Friendly Skies
Have you ever considered what happens to all the plastic cups and soda cans you give the flight attendant during your flight? If you guessed a garbage dump, you would be correct.
The question is why? You would think it’d be easy for airlines to collect cans, plastic cups and paper products for easy recycling but it seems airlines aren’t putting forth enough effort in being “green.”
A nonprofit environmental group called Green America recently released a report called “The Sorry State of Recycling in the Airline Industry,” which provides statistics on recycling efforts made by airlines. One startling statistic from the reports states that of the 1.3 pounds of trash left behind by a passenger, only 20% is recycled. However, nearly a pound of the trash left behind is recyclable, meaning airlines are not doing enough to forge a cleaner existence.
While airlines seem to be lagging in setting up sufficient recycling programs, Green America asks passengers to ensure their recyclable waste isn’t being tossed in the trash. Green America “suggests concerned passengers can take action by asking flight attendants whether any items are recycled; removing their own cans, plastic bottles and newspapers from the plane and recycling them at the airport; and writing to the airlines to urge them to do more.”
What is your take on this? How assertive/aggressive should airlines be in recycling waste product from their passengers? What are some of the inhibitors to setting up an inclusive policy?
Limited Edition Chevy Volt about to hit market
As we come close to the introduction of the Chevy Volt, individuals who have been putting off the purchase of a new car in order to get one of the first electric cars available to the public may have to wait even longer.
GM recently announced that it plans on producing 10,000 Chevy Volts in 2011, with plans to increase production to 30,000 in 2012.
According to the blog GM-Volt.com, there are 53,000 potential buyers who have shown interest in purchasing a Chevy Volt, meaning that demand for the new car far outstrips supply at the moment.
It appears that GM’s approach is one of caution, which I think is a calculated move as the company enters uncharted territory. The company needs to ensure that dealerships have been educated and are prepared for a new set of questions and potential issues related with a new car, even if they will have few to sell at first.
However, do you think that GM could be too cautious? What happens if one of its competitors announces a similar product, causing individuals to wait instead for that release? Nissan already plans on producing more Nissan Leafs during the first year of production than GM. Could GM’s caution be the company’s Achilles heel?